The competition to integrate US messaging apps with payment services is unlikely to compete for the champion. Signal, a small California-based cryptographic messaging app, is testing anonymous digital payment capabilities. Encapsulate everything that regulators fear.
Making money from messaging apps remains an ongoing task. Facebook (now called Meta) paid $ 19 billion to WhatsApp in 2014, and although advertising and e-commerce transactions are expected, it hasn’t made any money yet. I tried in-app payment, Brazil And India.
Signal has vowed not to sell data or display advertisements. Instead, it relies on user donations.Although the app benefited from a clumsy change attempt on WhatsApp Data sharing policy Last year it was estimated to be only 2% of WhatsApp’s global user base. If you add payments, more may be added.
Signal projects allow users to link their MobileCoin wallet to their account. MobileCoin is a so-called privacy coin designed to hide user IDs and their transactions. This fits Signal’s privacy-focused model. It also meets the needs of those who want to move money without detection from law enforcement agencies.
For now, the project is too small to raise a lot of concerns. Using cryptocurrencies that fluctuate wildly is unattractive. MobileCoin prices soared above $ 67 in April 2021, but are now trading at less than $ 10, according to CoinGecko data. Also, it is not easy to obtain. Only available on a few exchanges.
This does not mean that the US Securities and Exchange Commission is not paying close attention. The messaging app Telegram abandoned its own cryptocurrency plan when faced with the SEC battle. Meta’s crypto project Diem has received regulatory backlash. Project leader David Marcus then left the company. Signal’s anonymous payments are not backed by money laundering prevention organizations.
Signal’s own boss exit Moxie Marlinspike — MobileCoin Advisor — suggests that payment projects will continue to be restricted. Executive Chair Brian Acton has become Interim CEO. WhatsApp co-founder Acton left Facebook after fighting for plans to monetize the app. Commercial growth is not a priority. Regulators may be worried, but rivals can relax.
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